Sigma-Aldrich Completes Asset Sale to Fulfill European Union Commitments

Strategic Insights -

Sigma-Aldrich Corporation has completed the sale of its Sigma-Aldrich-branded solvents and inorganics business in the European Economic Area (EEA) to Honeywell, including global rights to its Fluka brand. This sale is part of the commitments Sigma-Aldrich made to the European Union to receive approval for its $17 billion acquisition by Merck KGaA. The transaction was finalized after receiving conditional approval from the European Commission in June 2015 and final approval from Sigma-Aldrich's shareholders in December 2014. The asset sale is a significant step in the approval process, with the European Commission set to review the agreement as the final step in the approval process.

Key Takeaways:

  • Sigma-Aldrich has completed the sale of its Sigma-Aldrich-branded solvents and inorganics business in the EEA to Honeywell as part of its commitments to the European Union for the $17 billion acquisition by Merck KGaA.
  • The sale includes global rights to the Company's Fluka brand, which was previously a part of Sigma-Aldrich's operations.
  • The asset sale was a condition of the European Union's approval for Merck's acquisition of Sigma-Aldrich, which was announced on September 22, 2014.
  • The European Commission previously provided conditional approval of the transaction on June 15, 2015.
  • The sale will enable Merck to complete the acquisition of Sigma-Aldrich, pending final approval from the European Commission.
  • Sigma-Aldrich has a global presence, operating in 37 countries with approximately 9,700 employees worldwide.
  • The company had sales of $2.79 billion in 2014 and distributes 250,000 chemicals, biochemicals, and other essential products to over 1.4 million customers globally.

Sources:

  • "Sigma-Aldrich Corporation Enters into Agreement for Sale of Sigma-Aldrich-branded Solvents and Inorganics Business in the EEA." PR Newswire, October 20, 2015.
  • "Sigma-Aldrich Announces Approval from European Commission for Merck Acquisition." Business Wire, June 15, 2015.
  • "Merck to Acquire Sigma-Aldrich for $17 Billion." PR Newswire, September 22, 2014.